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John Hancock Preferred Income Fund (HPI)
NYSE:HPI
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John Hancock Preferred Income Fund (HPI) AI Stock Analysis

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HPI

John Hancock Preferred Income Fund

(NYSE:HPI)

Rating:55Neutral
Price Target:
The overall stock score of 55 reflects the mixed financial performance of John Hancock Preferred Income Fund. The main strengths are its stable cash flow and attractive valuation, as evidenced by a low P/E ratio and high dividend yield. However, significant risks stem from the volatility in revenue and profitability, as well as bearish technical indicators.

John Hancock Preferred Income Fund (HPI) vs. SPDR S&P 500 ETF (SPY)

John Hancock Preferred Income Fund Business Overview & Revenue Model

Company DescriptionJohn Hancock Preferred Income Fund (HPI) is a closed-end management investment company that primarily invests in preferred stocks and other income-producing securities. The fund seeks to provide a high level of current income, consistent with preservation of capital, by focusing on sectors such as utilities, financials, and energy. Managed by John Hancock Investment Management, HPI leverages a team of experienced portfolio managers and analysts to select securities that offer attractive income and potential for capital appreciation.
How the Company Makes MoneyJohn Hancock Preferred Income Fund generates revenue primarily through the dividends and interest income received from its investments in preferred stocks and other income-oriented securities. The fund's income is distributed to its shareholders in the form of regular dividends. Additionally, the fund may realize capital gains from the sale of securities in its portfolio, which can contribute to its earnings. The fund's performance and income generation are influenced by factors such as interest rate changes, credit market conditions, and the overall economic environment. John Hancock Investment Management earns management fees based on the fund's assets under management, which is a key revenue stream for the investment management company.

John Hancock Preferred Income Fund Financial Statement Overview

Summary
John Hancock Preferred Income Fund exhibits mixed financial performance. While cash flow stability is a strength with a score of 70, revenue and profitability volatility result in a lower income statement score of 45. The balance sheet, with a score of 60, reflects moderate financial health but requires attention to declining equity ratio trends.
Income Statement
45
Neutral
The income statement shows volatility in revenue and profitability. Revenue growth is inconsistent, with substantial fluctuations from negative to positive. The net profit margin shows improvement in the most recent year, but historical performance has been mixed with significant losses in some years.
Balance Sheet
60
Neutral
The balance sheet reflects moderate financial health. The debt-to-equity ratio is reasonable, suggesting manageable leverage. However, the equity ratio has been declining, indicating a potential increase in risk. Return on equity has shown improvement but needs consistent positive performance.
Cash Flow
70
Positive
Cash flow has been relatively stable with a positive trend in free cash flow growth. Operating cash flow consistently supports net income, contributing to the company’s ability to fund operations and investments without external financing.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue48.14M-31.03M-34.92M101.85M-37.95M
Gross Profit48.14M-36.28M-40.78M95.98M-44.03M
EBITDA0.00-31.55M-32.19M0.00-38.38M
Net Income61.22M-31.55M-35.33M101.36M-38.38M
Balance Sheet
Total Assets689.24M664.34M738.84M801.81M718.88M
Cash, Cash Equivalents and Short-Term Investments389.92K232.66K334.66K215.06K810.00K
Total Debt257.10M257.10M257.10M250.50M235.50M
Total Liabilities259.19M258.56M264.46M255.07M236.21M
Stockholders Equity430.05M405.78M474.38M546.74M482.67M
Cash Flow
Free Cash Flow37.11M36.94M30.55M22.86M93.71M
Operating Cash Flow37.11M36.94M30.55M22.86M93.71M
Investing Cash Flow0.001.73M-27.52M-2.52M68.93M
Financing Cash Flow-36.95M-37.05M-30.43M-22.64M-93.83M

John Hancock Preferred Income Fund Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.10
Price Trends
50DMA
15.86
Positive
100DMA
15.62
Positive
200DMA
15.90
Positive
Market Momentum
MACD
0.07
Negative
RSI
64.48
Neutral
STOCH
72.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HPI, the sentiment is Positive. The current price of 16.1 is above the 20-day moving average (MA) of 15.98, above the 50-day MA of 15.86, and above the 200-day MA of 15.90, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 64.48 is Neutral, neither overbought nor oversold. The STOCH value of 72.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HPI.

John Hancock Preferred Income Fund Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$3.89B24.3232.70%3.25%12.95%23.72%
69
Neutral
12.108.34%12.92%0.47%-36.87%
68
Neutral
$17.84B12.0310.32%3.73%9.70%0.76%
58
Neutral
$257.99M23.610.35%12.92%-7.67%-106.54%
55
Neutral
8.3812.00%9.20%6013.33%
9.4712.16%7.02%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HPI
John Hancock Preferred Income Fund
16.10
0.15
0.94%
GHI
Greystone Housing Impact Investors
10.91
-1.79
-14.09%
MFIC
MidCap Financial Investment Corporation
13.31
0.95
7.69%
UTF
Cohen & Steers Infrastructure Fund
26.51
3.44
14.91%
CNS
Cohen & Steers
75.37
-9.92
-11.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025